Edinburgh's Murray Capital 'mindful of economic turmoil' as profits surge 31%

Murray Capital, the private investment office of the Murray family, has recorded double-digit growth in turnover, profit and shareholder funds as higher steel prices buoyed its metals business.

Ownership of the Edinburgh-based business passed from one generation of the Murray family to the next in March last year, when former Rangers FC owner Sir David Murray handed the reins to his sons, David and Keith.

Murray Capital’s principal activities are the development of land for the residential and commercial sectors, investment in private companies and property, wine importing and distribution, and the provision of metal stockholding, processing and distribution.

The latest set of accounts, for the year to the end of June, show turnover from continuing operations amounted to £92.8 million, an 11 per cent increase on the year before, driven primarily by increased steel prices in the company’s metals group.

David D Murray, managing director of Edinburgh-based Murray Capital Group.

The business recorded a profit before tax of £12.8m in the period, representing a 31 per cent increase on the 2021 figure of £9.8m. Those profits helped shareholders’ funds grow year-on-year from £35.5m to £43.9m, an annual return of about 23 per cent.

David D Murray, managing director of Murray Capital Group, said: “We are very pleased to post our best set of results for a number of years, although we do so with our feet planted firmly on the ground given the cyclical nature of our businesses and the current economic uncertainties in UK and global markets.

“The performance of the metals business is particularly encouraging, given the investment we made in restructuring that business during 2020.

“The current financial year has also started well, with encouraging trading results in the first quarter, although we are mindful of the wider economic turmoil and the general sense of nervousness about the year ahead.”

He added: “Being family-owned, with no external third-party debt, allows us to take a long-term and patient view, which we believe will be necessary as the cost of money increases and higher inflation continues to impact the environment in which we operate.

“We remain optimistic though, and will continue to focus on the things we can control and to build on the solid foundations we have developed across the group over many years.”

The increased profitability for the year was driven mainly by improved trading in the metals group - comprising two main businesses, Murray Steels and Hillfoot Steel - and the sale of 12 acres of consented land at Ratho Station on the outskirts of Edinburgh to housebuilder Taylor Wimpey.

Murray Capital made a number of new and follow-on investments in support of its portfolio of businesses as the group continues to pursue a “diversified and sustainable business”.

Plans for a 23-acre site at the Edinburgh International Business Gateway, next to Edinburgh Airport, were called in for review by the Scottish Government in May 2019 and remain on hold, pending approval from ministers. Murray said it hoped that this would progress in 2023.

Murray Capital Holdings continues to provide support to the Murray Family Foundation, which was established in 2017 to make charitable donations to a number of causes.